LEO Impact Capital, JBG SMITH’s workforce housing investment management platform, has acquired Sharon Crossing, a 144-unit, garden-style community in Charlotte, N.C., for $20.7 million. LEO partnered with the nonprofit Lotus Campaign for the acquisition.
This is JBG Smith’s first property outside the Washington, D.C. area, and is the inaugural purchase of the $150 million LEO Impact Housing Fund, intended to preserve long-term affordability for middle-income residents. The fund specializes in capitalizing workforce housing in neighborhoods that don’t qualify for federal subsidies. The communities are geared towards renters with everyday jobs such as teachers, firefighters and nurses who are unable to purchase homes . The investment vehicle is still raising money for acquisitions in areas such as Raleigh, Atlanta and Nashville and Washington, D.C.
According to Yardi Matrix data, the previous owner, Ginkgo Residential, purchased Sharon Crossing in 2018 for $14.6 million. Moving forward, Ginkgo will continue to provide on-site property management services. The property also has a $10.8 million CMBS loan from Prudential Financial set to mature in December, the same source shows.
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Originally constructed in 1984, Sharon Crossing includes 20 buildings with one- and two-bedroom layouts. Each apartment features full kitchens and walk-in closets, and select units have fireplaces and balconies. With the partnership between LEO Impact Capital and Lotus, 30 units will be reserved for Lotus clients through its Landlord Participation Program. Shared amenities at the property include a swimming pool, pickleball court, playground and dog park. Sharon Crossing is 97.9 percent occupied with an average rent of $1,292, Yardi Matrix shows.
Located at 2123 El Verano Circle in Charlotte, N.C., the community is about 9 miles away from downtown Charlotte and 15 miles away from the Charlotte Douglas International Airport.
LEO Impact Capital growing investments
With the acquisition of Sharon Crossing, LEO now has 11 properties in its portfolio, spanning 3,200 units across Maryland, Virginia, North Carolina and Washington D.C. While this was the first purchase with the LEO Impact Housing Fund, the company made an equity investment at the 118-unit Haven Columbia Pike in Arlington, Va. back in August. The investment was made through Impact Pool, another workforce housing investment vehicle.
JBG SMITH is also expanding in the D.C. area. In July, the company received approval for its third adaptive reuse project to transform two office buildings in the National Landing area into a mixed-use development that will include a 195-unit apartment building. The project will bring 195 units to market, and is expected to break ground by the end of the year.
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